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From 1 Apr 2005, all HDB resale flat transactions
involving a bank loan and the use of CPF savings for the purchase of the flat
and servicing of the loan will require a valuation report from a private
valuer assigned by HDB. |
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This requirement will also apply to transferees
who are taking bank loans to effect transfer of ownership of an existing HDB
flat at market valuation. |
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Since 1 Jan 2003, valuation reports for such flat
transactions could be performed by any licensed valuers including banks’
in-house valuers or external valuers engaged by the banks. |
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However, we have been receiving feedback on
"cash-back" arrangements. These occur when the buyers, sellers and housing
agents collude to inflate the declared purchase price so as to enable the
buyers to take a higher bank housing loan and/or to withdraw more CPF savings.
These arrangements are supported by valuation reports, which are also on the
high side. |
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Such "cash-back" arrangements are illegal. They
are also not financially prudent for the buyer. The buyer’s retirement savings
are eroded by the withdrawal of more CPF monies than is needed for the actual
purchase. |
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Buyers also expose themselves to greater financial
risks by taking on bigger mortgage loans, which will result in more interest
being incurred. Moreover, they will have to pay higher stamp/legal fees which
are computed based on the declared resale price. |
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Sellers may also be liable for a higher resale
levy based on the declared resale price if they subsequently purchase another
subsidized flat directly from HDB. |
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Parties involved in “cash-back” arrangements can
be prosecuted for cheating or false declarations. CPF Board and HDB will not
hesitate to take action against anyone found practising or abetting
“cash-back” transactions. |
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Under the Oaths and Declarations Act and the
Housing and Development Act, the penalties for such “cash-back” arrangements
can involve a fine and/ or up to 3 years’ imprisonment for a false
declaration, or a fine of up to $5,000 and/ or up to 6 months’ imprisonment
for giving false information to HDB respectively. |
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Housing agents found involved in cash-back
transactions will also be reported to the Inland Revenue Authority of
Singapore (IRAS), which licences housing agencies. In addition, if the housing
agent is from an agency under HDB's Listed Housing Agents Scheme, HDB may also
delist the agency. |
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With immediate effect, the CPF Board will also
conduct independent valuation on any suspected over-valued flats. This
valuation will then be used to determine the quantum of CPF withdrawals and
housing loans. |
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The new requirement to use an HDB-assigned valuer
for cases involving bank loans and usage of CPF funds will apply to resale
flat applications and flat transfer applications submitted to HDB on or after
1 Apr 2005. Valuation requests submitted to HDB will be randomly assigned to
one of the private valuers on its panel. |
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Public Enquiries |
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Members with enquiries on CPF matters can call the
CPF Call Centre at 1800-227-1188, email
PHS_bankloan@cpf.gov.sg or visit
the CPF website www.cpf.gov.sg. |
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For further information on acquiring the services
of an HDB assigned private valuer, the public can |
- refer to HDB’s website at
www.hdb.gov.sg
(under Housing Loans from Banks)
- e-mail HDBResale@hdb.gov.sg,
- call the toll-free
Sales/Resale Customer Service Line at 1800 - 866 3066 on weekdays from 8
am to 5 pm. |
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Issued By : Housing & Development Board |
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Date : 21 Feb 2005 |
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Source:
Housing & Development Board Press Release
21 Feb 2005 |
HDB-assigned valuers for bank loan cases
